Tal
Seminarium om förnyelsebar energi, Wien 21 november 2007
Maud Olofsson, Näringsminister, vice statsminister
Maud Olofsson talade på seminarium om förnyelsebar energi
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Your Majesty, Your Excellencies, Minister, Ladies and Gentlemen
First of all I would like to thank The Federation of Austrian Industry (IV, Industriellen Vereinigung) for arranging this important seminar. Climate change is probably the greatest challenge that we face today. Actions to reduce negative human influence on the earth have to be taken without delay in every country. And at all levels of society - by governments, industry, researchers and individuals.
For me, it is clear that the time for action is now. We have to put the nice declarations into practice. Industrialized countries like Sweden and Austria, must and can take the lead in this process.
The EU targets
I believe that, the European Union showed true leadership in March this year when we agreed on ambitious climate and energy targets. This was without doubt a milestone in the EU cooperation.
AND I would like to compliment Austria for paving the way for this agreement during your presidency in 2006!
The EU-agreement was based on a solid analysis by the Commission. The Commission stresses that the fight against climate change should be at the centre of the new European Energy Policy for three reasons:
Firstly, CO2 emissions from energy make up a major part of the green house gas emissions in the European Union. - By reducing emissions from this sector we address a large part of the problem.
Secondly, we can fight climate change by using less energy and more clean, locally produced energy. By doing so we also limit the EU's growing external dependence of oil and gas.
Thirdly, in this strive, we can create a more competitive EU energy market, stimulating innovation, new technology and jobs.
The Swedish government truly share this analysis. For us, this is not just an example of good thinking, it is also our own experience.
The Swedish experience
I am often asked if it is possible to achieve substantial emission reductions without a serious impact on economic and social development. My answer is definitely yes. This is shown by science and our own experience.
In Sweden, we have decreased the emissions of carbon dioxide by more than 7 % between 1990 and 2005. At the same time our economy has grown by 36 %. This has not been a quick fix. It has been possible through setting long term goals. And work with a number of tools such as taxes and incentive programmes to reach these goals.
Energy taxes has for example been used as an important tool in the Swedish energy policy for a long time. They have been imposed on electricity and fuels for several decades. The current energy taxation policy is aimed at improving the efficiency of energy use and encouraging the use of bio fuels. But also creating incentives for companies to reduce environmental impact and creating favorable conditions for renewable electricity.
In 1991, as one of the first countries in the world to do so, Sweden introduced a carbon dioxide tax. The tax has had an effect particularly in the heating sector, where the use of fossil fuels has decreased dramatically. I am quite confident that we will phase out fossil fuels completely from the heating sector by the year 2020.
The power sector is by tradition almost carbon-free: the major part of the electricity is produced by hydropower and nuclear energy. Oil is used only for peak load purposes, and an increasing share of the electricity is produced by bio-fuelled combined heat and power and from wind. A market-based support system for renewable electricity, the green certificate system, is in operation since 2003 and will last until at least 2030.
Bioenergy in Sweden
Like in Austria, bioenergy production in Sweden is primarily based on our rich forest resources and we have a long tradition and high competence in the area of sustainable forestry.
Forests cover about 60 % of our land and they are our primary source of bioenergy for heating and power production.
Today, agriculture only accounts for a few percent of our total bioenergy supply and about 2 % of the Swedish agricultural land is used for growing energy crops. But even if energy production from agriculture has its limits, it is likely that it will grow in importance in the future.
Biofuels for transportation
A major challenge that is still ahead of us is reducing the oil dependence in the transport sector.
Sweden is one of the EU member states where the introduction of biofuels has been quite successful so far.
Increasing the use of biofuels for transportation is high on the agenda in Sweden. The demand for environmentally friendly - or should I say less harmful - cars is high, partly due to public awareness and partly due to economic incentives. In October the share of "environmentally friendly cars" reached 21 % of the total number of newly registered cars. This is the highest level ever for one single month.
Financial support, of 10 000 Swedish kronor (approx 1000 EURO) for households that choose to buy a flexifuel, biogas or hybrid car or a car that is extremely fuel-efficient, also contributes to the increasing demand in Sweden.
Most of the biofuel used in Sweden is ethanol. We have a low-blend of 5 % ethanol in all gasoline and an increasing fraction of E85. There are also several large-scale projects on biogas as a transportation fuel.
We have a number of research programmes on for instance the second generation of biofules, biogas, black liquor and hybrid technology.
Conclusion
It is easy to talk about the threats of climate change and only paint a dark picture of the future. I strongly believe that the efforts needed to combat climate change are not constraining the economy. Instead, they provide us with a golden opportunity to introduce new, environmentally friendly technologies.
The global markets for sustainable energy products and services, including energy efficiency will without doubt continue to grow.
We are also seeing increasing numbers of companies both in Sweden and globally who recognise that environmental aspects and climate change is of strategic significance. They simply can not afford to ignore these issues
For me it is very positive to see how the market now strongly reacts to the climate challenge. It can be a powerful force and I am convinced that the market players together with necessary policy measures are the success factors.
Both in Austria and Sweden, the conditions for producing renewable energy are very good. This is a favourable point of departure when we shall meet the challenges ahead of us.
But to do so, we need to meet across national borders, on occasions like this seminar today, to share information and thoughts and to exchange experiences.
A personal reflection. My parents were of the generation that took part in the industrial revolution and gave me the economic standard that I have now. It is now my turn to give my children an hopeful future. Therefore we need a new vision for the world and lets start with the building of a sustainable and prosperous Europe.
Thank you very much for you attention!
